YouTube is currently negotiating with several media companies to feature their TV shows and films in a hub of ad-free channels. Testings started to know how the audience will react and know their interest regarding this new feature.
ISTANBUL, TURKEY - MARCH 23: The YouTube and Netflix app logos are seen on a television screen on March 23, 2018 in Istanbul, Turkey.
by Chris McGrath/Getty Images
(Photo : Chris McGrath/Getty Images) ISTANBUL, TURKEY - MARCH 23: The YouTube and Netflix app logos are seen on a television screen on March 23, 2018 in Istanbul, Turkey. The Government of Turkish President Recep Tayyip Erdogan passed a new law on March 22 extending the reach of the country's radio and TV censor to the internet.
Testing Free, Ad-Supported Streaming TV Channels
In a series to expand the company's ambition through its offerings despite being the dominant player already in online video, Wall Street Journal reported that YouTube is currently testing a new hub that contains ad-supported streaming channels for free to weigh viewer interest as they enter FAST media.
A spokeswoman from YouTube stated that, "We're always looking for new ways to provide viewers a central destination to more easily find, watch and share the content that matters most to them."
Free, Ad-supported Streaming TV channels, also known as FAST, are not new to the industry as several companies already have this feature on their offerings, including Roku Inc., Paramount Global's Pluto TV, and Fox Corp.'s Tubi.
In fact, The Verge reported that YouTube added free channels to its Google TV live tab through Pluto TV last year. Other than this, the company also has its own YouTube TV where users can experience a similar experience to standard television channels.
For only $65 per month, users could stream a package of major cable channels like CNN and ESPN. In July 2022, the company hit 5 million subscribers, branding this feature as the "better cable."
Companies Involved in the Testing
As per Engadget, the company negotiates with entertainment firms to feature their shows and movies in YouTube's hub of cable-like channels. This includes Lionsgate, A+E Networks, and FilmRise.
While YouTube is currently offering ad-supported movies on its main website, this new hub could have a bigger platter of free films and series to watch.
Through this, media companies will earn revenue from content views. FAST could launch later this year once YouTube sees the potential of the feature based on the initial reaction of the audience.
How Does it Work?
FAST services let users peruse a list of channels just like what they would do on cable TV where they can scroll through reruns of the show. While this is a crowded hub, it will be a much faster business as it could potentially grow in the United States, S&P Global Market Intelligence predicted.
This testing comes after several other streaming services, including Netflix, HBO Max, Disney Plus, and Peacock, offered cheaper alternatives to their tiers, as they launched free ad-supported tiers.
